Segmentation, Targeting And Positioning Case Study

One of the most common marketing models used in the current organizations is the Segmentation, Targeting and Positioning (STP) model. This model is mainly required in the developing countries and emerging markets to ensure that the consumers with low-level income get access to the basic infrastructure. Companies like GE, Siemens, Procter and Gamble, and Unilever are using technologies such as frugal engineering; a process to remove unnecessary features from a sturdy product, and reverse innovation; an innovation that is initially used in the developing countries before making it global. Countries like Africa need the STP model as many isolated villages’ lack basic services such as water and electricity .
Market segmentation, targeting and positioning is required to categorize consumers and countries based on their behavior, estimate the classified segments and focus on marketing to these countries and people who are keen on exploring the products. Positioning allows to distinguish between brands and products in the mindset of customers . Though segmentation and targeting are dissimilar, together they provide the needs of the market that help to develop market programs. Segmentation can be categorized as geographic segmentation that involves information and decision making, and customer segmentation is based on supply and demand with respect to consumer products .
The basic infrastructure does not reach the poor due to lack of scale and less capital, because the prices are very high and the companies sell most of the products to people with middle or higher income. Few companies must be appreciated as they took painstaking approach and yielded positive results. Companies such as Philips electronics, Siemens, and Dupont tested solar-powered systems in African countries. Nestle launched Leche Ideal; powdered milk in the lowest economy regions in Latin America, especially North-eastern Brazil. Proctor and Gamble could not emerge well in the low-level countries and decided to donate water purification system to the relief organizations and educate people on the benefits of healthy drinking.

Works Cited

Keegan, Warren J and Mark C Green. "Segmentation, Targeting and Positioning." Global Marketing. 8th. Pearson Education, 2014. 198-229. Print.
Srinivasan, R. International Marketing. 3rd. PHI Learning Pvt. Ltd, 2008. Print.